A Fife paper mill is receiving a £1 million-plus investment to further improve productivity and contribute more to the wider group’s success.
The Sapphire mill in Leslie is a key component of the Fourstones paper mill company, which has had a successful year.
The Northumberland group’s turnover rose by 10% to £20.1 million and pre-tax profit soared 77% to £1.247m.
Managing director Peter Duxbury said the Sapphire mill is now operating efficiently and has contributed towards the improved results.
“The principal risks and uncertainties facing the company are rival competition and the underlying state of the economy,” he said.
“However, as a result of the implementation of plant and machinery in recent years and the new site at Fettykil, the director is confident the company can perform well in the future.”
Financial controller Paul Ford said: “We are pleased at the performance of the Sapphire mill this year during which we were able to accelerate production.
“We are in the middle of a seven-figure investment at the site and are aiming to contribute more to the success of the company in 2015.
“We are refurbishing and replacing machinery to establish a new production line and increase capacity.”
Fourstones make creped papers, cellulose wadding, hospital disposable underpads and disposable wipes for health care and industrial customers.
Its base is the South Tyne Mill at Fourstones in Hexham and it also operates from the Leslie mill, which it bought in 2010.
The former Smith Anderson site was closed four years earlier and the new owners overhauled and restarted the mill with the help of a Scottish Enterprise Regional Selective Assistance grant.
Waste paper was sourced from the area as raw material to manufacture recycled paper products for tissue and packaging markets.
The use of electricity generated from on-site water turbines added to the green credentials, allowing Fourstones to laud the environmental soundness of the business and boast the creation of 100 jobs.
A setback came in 2011 when the site, renamed the Sapphire mill, suffered a fire when waste paper awaiting processing burst into flames.
The damage was repaired and activity restarted, and another boost came in 2012 when St Andrews University donated a range of paper-making equipment from the former Guardbridge paper mill which the higher education institution had purchased.
The Fourstones group, established in Northumberland in 1763, is one of the oldest paper manufacturers in the UK.